Annual Service Center
Rate Reviews
For FY2015
Presented by General Accounting
Agenda
 Cost Pool Overview
 Why must we do the Service Center
Rate Review?
 Address each tab of the rate review
workbook
 Questions & Answers
Cost Pool
Know your
costs
Cost
allocation
Service Center Rate
Review
Direct labor
Does the cost pool
Supplies
include all the actual
Administrative
Maintenance
expenses that helped
costs (payroll,
generate revenue?
purchasing, billing,
Depreciation
etc.)
Expense
Does the cost pool
include expenses
Utility
Overhead
that are not related
(paid)
to the business
activities?
A
B
C
Costs per
Service Line
Costs
Costs
Costs
Revenues per
Service Line
Revenues
Revenues
Revenues
Revenues Costs
+/-
+/-
+/-
Why a Service Center Rate Review?
 Compliance with Federal OMB Uniform
Guidance



Cost Principles (Subpart E)
Audit Requirements (Subpart F §200.500)
Specialized Service Facilities (Subpart E
§200.468)
http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl
Service Centers General Principles
 Established to recover actual costs.
 Cannot charge internal users more than
cost
 May accumulate profits from external sales
 Rates do not discriminate between internal
users, especially Federal
 Rate modifications, when necessary
 Charges should be based on actual usage
 Expected break-even over 3 years
Service Centers General Principles
 Surpluses from the service center should
not be used to fund unrelated activities
 Cannot accumulate cash in excess of
established University guidelines
 Keep all appropriate documentation
(usage log, invoices, expense record, etc.)
 Must maintain a published price list
Principle Review Steps




Identify all services provided
Determine direct costs associated with
each service
Identify indirect costs associated with
service center
Administrative Surcharges are not
recommended as they generally do not
pass audit
General Questions?

Can we include a “reserve” amount in the
rates to purchase new equipment?

Can we charge internal users based on
market rates, or what other institutions
charge?

Can we charge external users more than
the cost of the good or service provided?
General Instructions
 Use the Excel rate review workbook found
at: http://www.fa.ufl.edu/wp-content/uploads/ga/ServiceCenter-Rate-Review-Template.xlsx
 Enter data in the worksheets as directed
by the instructions found at:
http://www.fa.ufl.edu/wp-content/uploads/ga/ServiceCenter-Rate-Review-Instructions.pdf
General Instructions
 Who must complete the rate review workbook?



Federal revenues greater than $200,000
AND/OR
Total Internal Revenue exceeding $1,000,000
AND/OR
Federal revenues greater than $50,000 that
were not reviewed in the previous year.
 All Service Centers, large or small, are expected
to be in compliance with the OMB Uniform
Guidance and should not charge more than cost.
Sheet 1a and 1b – Administrative and
Operating Information
 Contact Information
 Operating Information
(billing/customers)
 Description of services provided
Sheet 1a – Administrative Information
Sheet 1b – Operating Information
Sheet 2 - Revenues
 A service line should be defined as a specific
service or product a customer agrees to pay for.
 Administrative support is not a service line but
a cost to allocate
 Each service line revenue is tracked in MyUFL
(department, flex) or using another internal
system.
 Unit should be a logical basis to establish rate(s).
 “Contract” type unit is not recommended
 Internal and external rates can be different with
external rates greater than internal rates.
Sheet 2 - Revenues
Sheet 3a and 3b – Non-Payroll Expenditures
Tab 3a shows expenses paid only by the Service
Center chartfields
 Tab 3b shows expenses paid by other chartfields
(subsidies)
 All expenses need to be allocated by Service Line
 Please specify the method used to allocate
the expenses.




Each service line does not necessarily consume
resources (expenses) in the same proportion.
Focus on GL accounts with large balances
Allocation based on percentage of revenue is not
appropriate.
Sheet 3a – Non-Payroll Expenses Paid
Only by Service Center Chartfields
Sheet 3b – Non-Payroll Expenses
Paid by Other Chartfields
Sheet 4a and 4b – Salaries Paid by Service
Centers and by Other Chartfields

Tab 4a shows Salaries and Benefits paid
from Service Center chartfields
 Tab 4b shows Salaries and Benefits paid
from other chartfields (salary subsidies)
Sheet 4a and 4b – Salaries Paid by Service
Centers and by Other Chartfields
 Provide name, position title (description),
chartfield and % of effort toward Service Center
 If individual is paid from multiple chartfields, list
the individual and each chartfield separately
 Individual effort should correlate to allocations
reported in the Effort Tracking System as
Auxiliary/Other Institutional Activities (Aux/OIA)
 Please specify the method used to allocate
salary.
 A distinction between direct labor and
personnel with oversight and supervisory
responsibilities may be useful.
Sheet 4a – Salaries Paid by Service
Center Chartfields
Sheet 4b – Salaries Paid by Other
Chartfields
Sheet 5a & 5b – Equipment Depreciation
 Provide Asset ID/Tag # and other
required information on Tab 5a



Depreciation Report can be run from
myUFL/Main Menu/Asset Management/MyAssets
MyAssets/Reports/Depreciation Reports
 Enter required depreciation information
on Tab 5a
 Enter Service Center % Usage on Tab 5a
 Allocate the depreciation by Service Line
on Tab 5b
Sheet 5a – Equipment Listing
Sheet 5b – Allocation of Equipment
to Service Lines
Sheet 6 – Space Survey
 Should agree to Space Inventory and Allocation
Survey submitted for the same fiscal year
 Identify all space used by or in support of the
Service Center
Sheet 7 – Unallowable Costs
 List any unallowable costs paid, so that these
costs can be removed from the rate
calculations.
 If your Service Center has not incurred any
of these unallowable costs, check the box for
“None of these costs occurred” at the top of
the page.
Sheet 7 – Unallowable Costs
Sheet 8 – Total Costs
 This data is populated automatically from other Tabs
Sheet 9 – Transfers Schedule
 Please list any transfers in (enter as a positive figure)
and transfers out (enter as a credit figure) for the
accounts listed.
 All overhead accounts 813xxx should not be included
on this tab, but should be included on Tab 3a or 3b.
Overhead charges are considered as allowable
expenses and not as transfers out.
 Explain any transfer in/out > $5,000 or 10% of
revenue whichever is larger
Sheet 9 - Transfers
Sheet 10 – Profit/Loss Calculation
 Shows profit/loss by Service Line
 Calculates whether Working Capital Balance (Cash
Balance) is under/over amount permitted by
University guidelines, which allow:
 90 days average operating expenditures plus
 Profit from external sales plus
 Accumulated asset depreciation
 The Service Center needs to reflect prior year
profit/loss by service line and total profit from
external sales on this tab.
Sheet 10 – Profit/Loss Calculation
Additional Notes and Deadlines
 Refer to prior year review comments
 Please contact General Accounting with any
questions
 Completed FY2015 workbooks should be
returned by Friday, October 30, 2015.
Queries and Enterprise Reporting
Queries
 UF_GL_TB_BY_FUND_DEPT_AUX_QRY
Trial Balance for ACTUALS ledger
 UF_GL_JOURNAL_DETAIL_QUERY2
Provides the details of entries making up the ACTUALS
Trial Balance
Enterprise Reporting
(Navigation: Main Menu>Enterprise Reporting>Access Reporting)
 FIT Cube
 Cost Distribution Reports: Payroll or Fellowship Earnings
and Estimated Fringe Benefits by Cost Center by Person
Navigation: Public Folder> Human Resources
Information>Pay Information>Current Pay
Cycle>Prompted Cost Distribution Reports
Provides earnings and fringe by person and cost center.
Contact Information
 Jeremiah Carlson
jccarlson@ufl.edu
 Ricabuena Gagné
bea1127@ufl.edu
 Mike Johnson
michaelsjohnson@ufl.edu
General Accounting
33 Tigert Hall
Box 113202
Phone 392-1326